Sellers are using this addendum to extend escrow or threaten to cancel the deal. It would be 4 month escrow if extended and not sure if sellers are going to close. And I have to pay for loan extension. Has any of you experienced this situation? Any advice would be appreciated.
That’s very weird for a seller to want to extend. I’m honestly not sure what legal recourse you have if they decide to not sell. You can refuse to sign the addendum and demand they honor the original contract. What’s your agent say?
We were in contract on a house (as buyers) and asked seller to sign same addendum to grant extension on close of escrow due to COVID. A lot of people are using this addendum now. They refused and wanted to force us to close so we hired a lawyer and backed out all together. According to our lawyer a seller doesn’t really have much recourse as if you want to fight it, will be years before courts are taking these cases but I’m not sure if other way around. We had removed all contingencies a few days before SIP was put in place so it was a little different. I know several other buyers/sellers who signed the addendums willingly because it’s such a weird time. If you’re worried about it I would talk to a lawyer.
Corona virus said that if seller/buyer has hardship due to the virus, the contract can be canceled without losing deposit. Both seller and buyer signed the addendum at the beginning.
My agent told me to contact a lawyer, his company lawyer said if the sellers could not prove their hardship due to the virus, their chance to win was not that high. But it will take time to go to court.
Walk away. Courts aren’t even open. Avoid litigation at all costs. You will be out thousands in lawyers fees so fast your head will spin. Sure can send a threatening letter from your lawyer. But even if you can get to court the cost is astounding. Find another deal.
Yes, walk away, only lawyers win in the end.
Rule of thumb with legal matters: Even if the law is on your side, and the facts are on your side, you may loose in a court. Courts are not as predictable these days. And in your case, you actually signed a contract that says seller or buyer can terminate the contract. So, your chance of winning lessens further.
This is what our lawyer advised. Courts aren’t open so a case like this would be like 2+ years before you could even litigate. Not worth it. If you already signed the addendum then there isn’t really much to stand on.
Everyone says walk away but it seems like there are options. Ask for a payment to sign the extension … choose an amount that makes it worth your while or price modification to cover your additional costs, or at least return of earnest money.
If seller does want to move property, he doesn’t want clouded title. It’s unlikely you can get satisfactory results directly out of lawsuit, but involving the property in Bona fide litigation can give you leverage since he can’t flip it to someone else as easily (would have to disclose ongoing litigation). I’m not really estate lawyer so maybe misguided here but if you are in the right and have strong feelings consider still filing lawsuit. Can also backfire if he digs in heels. Only worth it if truly important to you.